US inflation is set to rise further: ISM Services Prices rose +0.6 points in May, to 71.3, the highest since August 2022. Since February, the index has risen +8.3 points, the biggest 3-month increase since 2021. Diesel, gasoline, oil, and related commodities were the most frequently cited as "up in price" in the survey. In May alone, no commodities were reported as "down in price." Historically, rapidly rising services prices have led CPI inflation with a ~3-month lag. The current reading suggests CPI could rise above 5.0% for the first time since early 2023, from the 3.8% seen in April. Inflation pressures are mounting.(The Kobeissi Letter)